A Total Cost Function of the Form TC = a

question 126

Multiple Choice

A total cost function of the form TC = a + bQ,with both a > 0 and b > 0,best describes a firm that has

• A) small fixed cost and increasing marginal cost.
• B) significant fixed cost and increasing marginal cost.
• C) small fixed cost and decreasing marginal cost.
• D) significant fixed cost and small,constant marginal cost.
• E) significant fixed cost and decreasing marginal cost.

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Definitions:

Free Blacks

African Americans who were not enslaved, enjoyed certain degrees of freedom, and sometimes owned property, particularly before the Civil War in the United States.

Laws

Rules and regulations that are established and enforced by a governing authority to maintain order and protect people's rights.

Franchise

The right to vote in public, political elections; often discussed in the context of extending this right to different groups historically excluded.

Black Sailmaker

Refers to a historically significant African-American individual or individuals engaged in the craft of making sails, a profession that would have held import both economically and in terms of mobility.